About the "suspension" of maturities (in mortgage contracts)

Are you perhaps concerned?

Risk of temporality

Under French law, there is no inventory of credit risks. Pity.

In addition to this, you will need to know more about it.

Credit risks (just like market risks) are linked to a time scale (maturity in banking verbiage). If a two-year bridging loan exposes you to the risk of not selling on time , the mortgage contract commits you, for its part, for practically your entire life.

In addition to this, you will need to know more about it.

It's Captain Haddock's adhesive plaster: impossible to get rid of!

In addition to this, you will need to know more about it.

Sparadrap%20Haddock_edited.png

The risks of mortgage credit, (against which you will not be warned) , can be presented in two main categories:

In addition to this, you will need to know more about it.

  • The risks of reversals (*): Of course, market reversals , as in 2009. (Your house is worth twice a month as its purchase price) , but also reversals in monetary curves (Talk to those who have a credit in Swiss Francs, refundable in Euro, or click here ), and even scheduled reversals (such as those suffered by " tiered " borrowers).

In addition to this, you will need to know more about it.

  • Uninsurable risks related to personal life (*): These are the hardest to manage, because they depend on you, and that is why, unlike the risks of accident or death, they are not insurable. The risk, first and foremost, of loss of standard of living , following a separation or divorce for example. But also - I see this frequently - the risk of loss of self-confidence , leading to self-esteem or depression. to be complete, we must add the risk of a crisis , which occurs when the dialogue is completely broken with your interlocutor in branch (risk which, moreover, does not exist with online banks!) .

In addition to this, you will need to know more about it.

(*) These risks are mentioned purely as an example, there are many others.

Positive law

These risks, which have arisen, can be managed.

In addition to this, you will need to know more about it.

  • Self-Management : If your credit agreement has options, consider using them. Of course, it is not very simple and it is especially very expensive (since the interest of the "deferred" maturities will be either capitalized, or postponed at the end of the initial term of the credit - which costs even more expensive -) .

In addition to this, you will need to know more about it.

  • Over-indebtedness : If your situation is not " reversible ", this is the solution, no need to procrastinate. Of course, it is difficult. But it's even worse not to make this decision than not to have your tooth decay treated.

In addition to this, you will need to know more about it.

  • Suspension : this is about asking a judge to modify your contract, which, for lawyers, is heresy. However, there is in the Consumer Code a very remarkable Article L314-20, according to which: " The performance of the obligations of the debtor can be, in particular in the event of dismissal, suspended by order of the judge of the litigation of the protection in the conditions provided for in article 1343-5 of the civil code. The ordinance can decide that, during the grace period, the sums due will not produce interest. In addition, the judge can determine in his order the modalities of payment of the sums which will be payable at the end of the suspension period, without the last payment being able to exceed by more than two years the term initially foreseen for the repayment of the loan; it can however postpone ruling on these terms until the end of the suspension period " . This is the heart of our subject on this page .

In addition to this, you will need to know more about it.

What suspension? how to do ?

Simple in appearance, this text is complex, and this is the reason why I wanted to give here a clear, complete explanation, complete with a free template.

In addition to this, you will need to know more about it.

  • Trap : Attention, article L.314-20 of the Civil Code is not directly applicable to your situation. These are the terms that it provides that can be implemented by decision of the Judge, but the conditions of use are different: L.1343-5 C.Civ does not provide for any conditions to be applied by a Judge. On the contrary, Article L.314-20 provides for it, and it is the only text that applies in matters of credit .

In addition to this, you will need to know more about it.

  • Conditions : In terms of the suspension of credit maturities, there must be an operative event : one of the risks listed above .

In addition to this, you will need to know more about it.

  • What credit? : any credit. A consumer credit (personal credit, assigned credit, revolving credit), a credit by drawing on account (authorized or not overdraft, reconstituting credit), or a mortgage of course.

In addition to this, you will need to know more about it.

  • What Judge? : The Protection Litigation Judge. This Magistrate is the former Judge of the District Court, it being observed that the Judge ruling on matters of suspension does not rule on contentious matters, but on Gracious matters . In short. These magistrates are extremely competent , do not hesitate to ask them.

In addition to this, you will need to know more about it.

  • At what moment ? : At any moment. Even after the expiration of the term, which the Court of Cassation has ruled many times. And even more particularly if the bank has taken enforcement measures against you - foreclosures, or any other enforcement measure -. According to the provisions of the aforementioned article L.1343-5 C.Civ, " The judge's decision suspends the enforcement proceedings which would have been initiated by the creditor ".

In addition to this, you will need to know more about it.

  • With a lawyer? : No. (But, yes of course!) . The lawyer is not obligatory if your request for suspension presents a stake of less than 10,000 € . Beyond this threshold ... the lawyer is compulsory. Calculating this stake is a science, but consider, briefly , that if your monthly deadline to be suspended is greater than € 416, the stake will exceed € 10,000. An appeal from a refusal decision cannot be heard or examined by a Court of Appeal without a lawyer.

In addition to this, you will need to know more about it.

  • How to express oneself? what to say ? : This is the center of the problem.

In addition to this, you will need to know more about it.

  1. Explain the operative event: This is the part of your request that explains how things got there. Be factual.

  2. Prove it : Attach to your request as many supporting documents as possible (letter of dismissal, summons for a divorce hearing, certificate of separation, certificate from a social worker, certificate from a psychiatrist, certificate from the employment center, letters from the bank or from a third party). Each situation is different and has its own relevant arguments.

  3. Make a financial report: do not hesitate to draw up an objective asset balance sheet: assets / liabilities; income / expenses.

  4. Explain how a suspension would turn the situation around: This is certainly the most difficult point because it is forward-looking (and this is where, in the end, a lawyer is very useful). It is advisable to explain to the Judge how 10, 14 or 24 months of suspension will allow you to resume your payments after having returned your situation . (Return to employment for example). The power of the Judge is linked to this condition : it is necessary to resume the regulations at the end of the suspension period of 24 months maximum.

In addition to this, you will need to know more about it.

  • Repetition : Repeated requests are not prohibited, but they will be very badly received, unless another operative event has intervened.

In addition to this, you will need to know more about it.

At the bottom of this long explanation, I give you a free model, intended to help you in this very delicate process, but often saving, for the benefit of the time that the Magistrates devote to it to follow it up.

>> (To download the model click on the button below

In addition to this, you will need to know more about it.

In addition to this, you will need to know more about it.

In addition to this, you will need to know more about it.

In addition to this, you will need to know more about it.

 
_Hervé_Brosseau_Pict.jpg

ABOUT US

Our law firm was created in 1994 in Paris. It was born out of an overwhelming desire to defend consumers against deceptive practices, and to defend the weak part of the credit contract.

By designing a simple and efficient working model, specifically geared towards the success of suspended requests, we believe we have fulfilled this objective.

Contact us to find out what we can do for you.